New hotel planned for Worcester's Lincoln Square

WORCESTER – A New Hampshire developer is planning to build a new hotel near Lincoln Square, a project welcomed by city officials who say Worcester needs more guest rooms.

XSS Hotels of Manchester, N.H., owns the Courtyard by Marriott at 72 Grove St. and plans to build another hotel nearby.

"We think there's room for another 100 or so hotel rooms," said Mark Stebbins, a partner and owner of XSS.

The company also owns the Residence Inn, another Marriott brand, on Plantation Street.

Mr. Stebbins didn't say what brand affiliation the new hotel would have. The building, still in the early stages of design, would serve business and leisure customers visiting Worcester's companies, hospitals and colleges.

"We're very comfortable with it," Mr. Stebbins said today. "We're comfortable that we could make a profit. We feel there's room for more product."

Robert Murdock of the marketing organization Destination Worcester told the City Council last month that Worcester has a shortage of hotel rooms.

"As a result of the Crowne Plaza closing, it is more difficult to find available space in Worcester for groups that Destination Worcester brings or is trying to bring into the City," Mr. Murdock said in a report to the council.

To accommodate one group coming to the city for a convention in August, Mr. Murdock had to book rooms in Auburn, Marlboro and Westboro because Worcester alone didn't have enough guest rooms, he said.

Timothy J. McGourthy, Worcester's chief development officer, said the city isn't able to compete for some events because of the hotel shortage.

"We're all for increasing the number of hotel rooms and the potential of a new hotel in the downtown-Lincoln Square area," he said.

XSS owns 25 hotels in several Northeast states. Mr. Stebbins said he hopes to have detailed plans for the new Worcester hotel prepared by summer. The new hotel would compete with its sister property, the 134-room Courtyard, which is undergoing renovations.

Mr. Stebbins expects brand loyalty will bring some customers to the Courtyard, and others to the still unnamed new hotel.

Mr. McGourthy said the competition would be good for Worcester.

"In most cities you see hotel districts," he said. "I think downtown Worcester could definitely support additional hotel rooms in close vicinity to one another."

Downtown Worcester also includes a Hilton Garden Inn and the Hotel Worcester, which lost its Hampton Inn affiliation last year. The former Crowne Plaza, which closed after financial troubles, is now owned by MCPHS University.